Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
G-fees weigh heavy in Fannie, Freddie income
WASHINGTON (5/9/14)--Single-family guaranty fee income brought in by Fannie Mae totaled $2.9 billion in the first quarter of 2014, and the government-sponsored enterprise said it expects those fees to become the primary source of the company's revenues in the near future.
 
Net income was $5.3 billion and comprehensive income was $5.7 billion during that quarter, Fannie Mae added. This is the ninth consecutive quarter of profits for Fannie Mae.
 
Overall, Fannie Mae said it expects to remain profitable for the foreseeable future. 
 
Fellow government-sponsored enterprise Freddie Mac also reported strong financials in the first quarter of 2014: That firm reported quarterly income of $4 billion, and was profitable for the tenth straight quarter. However, Freddie Mac cautioned that the current level of earnings would not be sustainable over the long term.
 
Fannie Mae last year announced plans to increase guaranty fees, but new Federal Housing Finance Agency Director Mel Watt said he planned to delay these planned increases. 
 
Under former acting Director Ed DeMarco, the FHFA had planned to increase base guarantee fees for all mortgages by 10 basis points, update the up-front guarantee fee grid to better align pricing with the credit risk characteristics of the borrower, and eliminate the up-front 25 basis point adverse market fee, except in the four states whose foreclosure carrying costs are more than two standard deviations greater than the national average. These planned increases would have resulted in an average guaranty fee increase of approximately 11 basis points for the third quarter of 2013.
 
Watt said he will thoroughly evaluate the proposed fee changes, and would give the public a minimum of 120 days' notice before he made any changes to the guaranty fee structure.
 
The Credit Union National Association has urged FHFA not to go forward with these fee increases.
RSS





print
News Now LiveWire
What role are #creditunions playing in @gatesfoundation's 2030 vision of financial services? Read #NewsNow Monday
4 hours ago
Consumers fear inaccurate info lingers on credit reports, says @FTC study Read @CUNA's News Now: http://t.co/RzNLMnaROO
6 hours ago
@PCUA has formed a @LinkedIn networking group for former bankers turned #creditunion employees.
6 hours ago
.@politico reports Democrats haven't picked the city yet, but their 2016 convention will be held the week of July 25.
6 hours ago
.@cuna, @DCUC_HQ urge @CFPB to exempt #CUs from changes to Military Lending Act rules cuz CUs aren't part of the targeted problem. NN Monday
8 hours ago